86430 Federal Register / Vol. 88, No. 238 / Wednesday, December 13, 2023 / Notices 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A). 

4 17 CFR 240.19b–4(f)(4). 

5See Securities Exchange Act Release Nos. 81635 

(September 15, 2017), 82 FR 44224 (September 21, 

2017) (SR–DTC–2017–013; SR–FICC–2017–016; 

SR–NSCC–2017–012) (‘‘Initial Filing’’) and 

Securities Exchange Act Release Nos. 89271 (July 

09, 2020), 85 FR 42933 (July 15, 2020) (SR–NSCC– 

2020–012); Securities Exchange Act Release No. 

89269 (July 09, 2020), 85 FR 42954 (July 15, 2020) 

(SR–DTC–2020–009); and Securities Exchange Act 

Release No. 89270 (July 09, 2020), 85 FR 42927 

(July 15, 2020) (SR–FICC–2020–007) (together with 

the Initial Filing, the ‘‘Framework Filings’’) 

6Supra note 5. 

7 17 CFR 240.17Ad–22(e)(1), (3), (20), (21), (22) 

and (23). 

Dated: December 8, 2023. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–27325 Filed 12–12–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99108; File No. SR–DTC– 

2023–012] 

Self-Regulatory Organizations; The 

Depository Trust Company; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend the 

Clearing Agency Risk Management 

Framework 

December 7, 2023. 

Pursuant to section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on December 

1, 2023, The Depository Trust Company 

(‘‘DTC’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change as described 

in Items I, II and III below, which Items 

have been prepared by the clearing 

agency. DTC filed the proposed rule 

change pursuant to section 19(b)(3)(A) 

of the Act 3 and Rule 19b–4(f)(4) 

thereunder.4 The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The proposed rule change of The 

Depository Trust Company (‘‘DTC’’) is 

provided hereto [sic] as Exhibit 5 and 

amends the Clearing Agency Risk 

Management Framework (‘‘Risk 

Management Framework’’, or 

‘‘Framework’’) of DTC and its affiliates, 

Fixed Income Clearing Corporation 

(‘‘FICC’’) and National Securities 

Clearing Corporation (‘‘NSCC,’’ and 

together with FICC and DTC, the 

‘‘Clearing Agencies’’).5 The proposed 

rule change would amend the Risk 

Management Framework to clarify and 

revise the descriptions of certain matters 

within the Framework, as further 

described below. The proposed changes 

would update and clarify the Risk 

Management Framework but do not 

reflect changes to how the Clearing 

Agencies comply with the applicable 

requirements of Rule 17Ad–22(e), as 

described in greater detail below. 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, the 

clearing agency included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

clearing agency has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

1. Purpose 

The Clearing Agencies adopted the 

Risk Management Framework 6 to 

provide an outline for how each of the 

Clearing Agencies (i) maintains a wellfounded, clear, transparent and 

enforceable legal basis for each aspect of 

its activities; (ii) comprehensively 

manages legal, credit, liquidity, 

operational, general business, 

investment, custody, and other risks 

that arise in or are borne by it; (iii) 

identifies, monitors, and manages risks 

related to links it establishes with one 

or more clearing agencies, financial 

market utilities, or trading markets; (iv) 

meets the requirements of its 

participants and the markets it serves 

efficiently and effectively; (v) uses, or at 

a minimum accommodates, relevant 

internationally accepted communication 

procedures and standards in order to 

facilitate efficient payment, clearing and 

settlement; and (vi) publicly discloses 

certain information, including market 

data. In this way, the Risk Management 

Framework currently supports the 

Clearing Agencies’ compliance with 

Rules 17Ad–22(e)(1), (3), (20), (21), (22) 

and (23) of the Standards,7 as described 

in the Framework Filings. In addition to 

setting forth the way each of the 

Clearing Agencies addresses these 

requirements, the Risk Management 

Framework also contains a section titled 

‘‘Framework Ownership and Change 

Management’’ that, among other 

matters, describes the Framework 

ownership and the required governance 

process for review and approval of 

changes to the Framework. In 

connection with the annual review and 

approval of the Framework by the Board 

of Directors of NSCC, DTC and FICC 

(each a ‘‘Board’’ and collectively, the 

‘‘Boards’’), the Clearing Agencies are 

proposing to make certain revisions to 

the Framework. 

The proposed changes would clarify 

and enhance the descriptions in the 

Risk Management Framework, for 

example, (i) clarify the cadence of 

publication of disclosure frameworks; 

(ii) clarify the description of the 

Clearing Agencies recovery and winddown processes and procedures; and 

(iii) make other non-substantive 

clarifying and clean-up changes to the 

Framework. Each of these categories of 

changes are discussed in further detail 

below. 

i. Proposed Amendment To Clarify the 

Cadence of Publication of Disclosure 

Frameworks 

Section 4.1 of the Framework 

describes certain tools provided to 

Clearing Agency participants to assist 

participants in understanding the 

Clearing Agencies’ products and 

services and their use. One such tool is 

the publication of disclosure 

frameworks to the DTCC website. The 

proposed change would enhance the 

description in the third bullet of Section 

4.1, to add that although each of the 

Clearing Agencies publish to the DTCC 

website disclosure frameworks that are 

updated on a biennial basis, such 

frameworks are also updated more 

frequently for material changes. 

ii. Proposed Amendment To Clarify the 

Description of Recovery and WindDown 

Section 5 of the Framework describes 

the Clearing Agencies identification of 

scenarios that may potentially prevent 

them from being able to provide critical 

operations and services, and assessment 

of options for recovery and orderly 

wind-down, and maintenance of 

appropriate plans for recovery and 

orderly wind-down. The proposed 

changes to Section 5 are primarily 

rephrasing and grammatical choices that 

clarify the Framework and conform the 

language in the Framework to the 

Clearing Agencies’ stand-alone Recovery 

and Wind-Down Plans. 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 88, No. 238 / Wednesday, December 13, 2023 / Notices 86431 

8 15 U.S.C. 78q–1(b)(3)(F). 

9 Id. 10 Id. 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f). 

iii. Proposed Amendment To Make 

Other Non-Substantive Clarifying 

Changes 

These proposed changes consist of 

rephrasing for clarity and removal of 

unnecessary language in the 

Framework. These changes include: (i) 

changes to Section 1 to simplify the 

description of other documentation of 

the Clearing Agencies that support the 

activities described in the Framework 

by removing statements regarding the 

maintenance of those documents that 

are not relevant to the operation of this 

Framework and removing redundant 

sentences; (ii) add ‘‘and’’ for 

grammatical purposes in the second 

sentence of the last paragraph of Section 

3.2 as well as the words ‘‘when 

required’’ as clarifying language; (3) 

remove the words ‘‘Market Risk’’ from 

the heading ‘‘Clearing Agency Stress 

Testing Framework’’ in Section 3.3.3 

and add ‘‘liquidity resources’’ to align 

with other documentation of the 

Clearing Agencies; (4) deletion of the 

word ‘‘all’’ in various sentences in 

Section 4.2.2, as unnecessary. 

2. Statutory Basis 

The Clearing Agencies believe that the 

proposed changes are consistent with 

section 17A(b)(3)(F) of the Act 8 for the 

reasons described below. Section 

17A(b)(3)(F) of the Act requires, in part, 

that the rules of a registered clearing 

agency be designed to promote the 

prompt and accurate clearance and 

settlement of securities transactions, 

and to assure the safeguarding of 

securities and funds which are in the 

custody or control of the clearing agency 

or for which it is responsible.9 The 

proposed changes would clarify the 

descriptions of certain matters within 

the Framework to improve 

comprehensiveness and align with other 

documentation of the Clearing Agencies, 

as described above. By creating clearer, 

updated descriptions, the Clearing 

Agencies believe that the proposed 

changes would make the Risk 

Management Framework more effective 

in providing an overview of the 

important risk management activities of 

the Clearing Agencies, as described 

therein. 

As described in the Framework 

Filings, the risk management functions 

described in the Risk Management 

Framework allow the Clearing Agencies 

to continue to promote the prompt and 

accurate clearance and settlement of 

securities transactions and continue to 

assure the safeguarding of securities and 

funds which are in their custody or 

control or for which they are 

responsible notwithstanding the default 

of a member of an affiliated family. The 

proposed changes to improve the clarity 

and accuracy of the descriptions of risk 

management functions within the 

Framework would assist the Clearing 

Agencies in carrying out these risk 

management functions. Therefore, the 

Clearing Agencies believe these 

proposed changes are consistent with 

the requirements of section 17A(b)(3)(F) 

of the Act.10

(B) Clearing Agency’s Statement on 

Burden on Competition 

The Clearing Agencies do not believe 

that the proposed changes to the 

Framework described above would have 

any impact, or impose any burden, on 

competition. As described above, the 

proposed rule changes would improve 

the comprehensiveness of the 

Framework by creating clearer, updated 

descriptions, thereby making the Risk 

Management Framework more effective 

in providing an overview of the 

important risk management activities of 

the Clearing Agencies. As such, the 

Clearing Agencies do not believe that 

the proposed rule changes would have 

any impact on competition. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants, or Others 

DTC has not received or solicited any 

written comments relating to this 

proposal. If any written comments are 

received, they will be publicly filed as 

an Exhibit 2 to this filing, as required by 

Form 19b–4 and the General 

Instructions thereto. 

Persons submitting comments are 

cautioned that, according to Section IV 

(Solicitation of Comments) of the 

Exhibit 1A in the General Instructions to 

Form 19b–4, the Commission does not 

edit personal identifying information 

from comment submissions. 

Commenters should submit only 

information that they wish to make 

available publicly, including their 

name, email address, and any other 

identifying information. 

All prospective commenters should 

follow the Commission’s instructions on 

how to submit comments, available at 

https://www.sec.gov/regulatory-actions/ 

how-to-submitcomments. General 

questions regarding the rule filing 

process or logistical questions regarding 

this filing should be directed to the 

Main Office of the Commission’s 

Division of Trading and Markets at 

tradingandmarkets@sec.gov or 202– 

551–5777. 

DTC reserves the right not to respond 

to any comments received. 

III. Date of Effectiveness of the 

Proposed Rule Change, and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to section 

19(b)(3)(A) 11 of the Act and paragraph 

(f) 12 of Rule 19b–4 thereunder. At any 

time within 60 days of the filing of the 

proposed rule change, the Commission 

summarily may temporarily suspend 

such rule change if it appears to the 

Commission that such action is 

necessary or appropriate in the public 

interest, for the protection of investors, 

or otherwise in furtherance of the 

purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

DTC–2023–012 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549. 

All submissions should refer to file 

number SR–DTC–2023–012. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (https://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 


khammond on DSKJM1Z7X2PROD with NOTICES
86432 Federal Register / Vol. 88, No. 238 / Wednesday, December 13, 2023 / Notices 

13 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3The Exchange proposes to define a ‘‘Monthly 

Options Series’’ in Options 4A, Section 2(l) to 

mean, for the purposes of Options 4A, a series in 

an options class that is approved for listing and 

trading on the Exchange in which the series is 

opened for trading on any business day and that 

expires at the close of business on the last business 

day of a calendar month. The Exchange proposes 

to re-letter the subsequent definitions in Options 

4A, Section 2. 

4As provided in proposed Options 4A, Section 

12(h)(2)(i), the Exchange may list Monthly Options 

Series for up to five currently listed option classes 

that are either index options or options on ETFs; the 

five Monthly Options Series include both index 

options and options on ETFs. 

5See Securities Exchange Act Release No. 98915 

(November 13, 2023), 88 FR 80356 (November 17, 

2023) (SR–Cboe–2023–049) (Order Approving a 

Proposed Rule Change To Adopt Monthly Options 

Series) (‘‘Cboe Monthly Approval Order’’). 6The Exchange notes this provision considers 

consecutive monthly listings. In other words, as 

other expirations (such as Quarterly Options Series) 

are not counted as part of the maximum, those 

expirations would not be considered when 

considering when the last expiration date would be 

if the maximum number were listed consecutively. 

For example, if it is January 2024 and the Exchange 

lists Quarterly Options Series in class ABC with 

expirations in March, June, September, December, 

and the following March, the Exchange could also 

list Monthly Options Series in class ABC with 

expirations in January, February, April, May, July, 

August, October, and November 2024 and January 

and February of 2025. This is because, if Quarterly 

Options Series, for example, were counted, the 

Exchange would otherwise never be able to list the 

maximum number of Monthly Options Series. This 

is consistent with the listing provisions for 

Quarterly Options Series, which permit calendar 

quarter expirations. The need to list series with the 

same expiration in the current calendar year and 

the following calendar year (whether Monthly or 

Quarterly expiration) is to allow market participants 

to execute one-year strategies pursuant to which 

they may roll their exposures in the longer-dated 

options (e.g. January 2025) prior to the expiration 

of the nearer-dated option (e.g., January 2024). 

7See proposed Options 4A, Section 12(h)(2)(ii). 

8See proposed Options 4A, Section 12(h)(2)(iii). 

9See proposed Options 4A, Section 12(h)(2)(iv). 

The Exchange notes this proposed provision is 

consistent with the initial series provision for the 

Quarterly Options Series program in Options 4A, 

Section 12(g). 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549 on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of DTC 

and on DTCC’s website (https://

dtcc.com/legal/sec-rule-filings.aspx). Do 

not include personal identifiable 

information in submissions; you should 

submit only information that you wish 

to make available publicly. We may 

redact in part or withhold entirely from 

publication submitted material that is 

obscene or subject to copyright 

protection. All submissions should refer 

to file number SR–DTC–2023–012 and 

should be submitted on or before 

January 3, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–27267 Filed 12–12–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99103; File No. SR–BX– 

2023–032] 

Self-Regulatory Organizations; Nasdaq 

BX, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Regarding Monthly 

Options Series 

December 7, 2023. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on November 

29, 2023, Nasdaq BX, Inc. (‘‘BX’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend the 

Rules at Options 4A (Options Index 

Rules) to adopt Monthly Options Series. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/nasdaq/rules, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

Options 4A (Options Index Rules) to 

accommodate the listing of option series 

that would expire at the close of 

business on the last business day of a 

calendar month (‘‘Monthly Options 

Series’’).3 Of note, Nasdaq ISE, LLC 

(‘‘ISE’’) will separately file a rule change 

to adopt a Monthly Options Series for 

ETFs. BX’s Options 4 rules, which 

govern the ability to transact options on 

ETFs, incorporate by reference ISE’s 

Options 4 rules. This rule change 

proposes to amend BX’s index options 

rules to adopt a Monthly Options Series 

program. Pursuant to proposed Options 

4A, Section 12(h)(2)(i), the Exchange 

may list Monthly Options Series for up 

to five currently listed option classes 

that are either index options or options 

on ETFs.4 In addition, the Exchange 

may also list Monthly Options Series on 

any options classes that are selected by 

other securities exchanges that employ 

a similar program under their respective 

rules.5 The Exchange may list 12 

expirations for Monthly Options Series. 

Monthly Options Series need not be for 

consecutive months; however, the 

expiration date of a nonconsecutive 

expiration may not be beyond what 

would be considered the last expiration 

date if the maximum number of 

expirations were listed consecutively.6

Other expirations in the same class are 

not counted as part of the maximum 

numbers of Monthly Options Series 

expirations for a class.7 Monthly 

Options Series will be P.M.-settled.8

The strike price of each Monthly 

Options Series will be fixed at a price 

per share, with at least two, but no more 

than five, strike prices above and at least 

two, but no more than five, strike prices 

below the value of the underlying index 

or price of the underlying security at 

about the time that a Monthly Options 

Series is opened for trading on the 

Exchange. The Exchange will list strike 

prices for Monthly Options Series that 

are reasonably related to the current 

price of the underlying security or 

current index value of the underlying 

index to which such series relates at 

about the time such series of options is 

first opened for trading on the 

Exchange. The term ‘‘reasonably related 

to the current price of the underlying 

security or index value of the 

underlying index’’ means that the 

exercise price is within 30% of the 

current underlying security price or 

index value.9 Additional Monthly 

Options Series of the same class may be 


khammond on DSKJM1Z7X2PROD with NOTICES